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Sharp Screen Films, Inc., is developing its annual financial statements at December 31, current year. The statements are complete except for the statement of cash

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Sharp Screen Films, Inc., is developing its annual financial statements at December 31, current year. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized as follows: Current Year Prior Year Balance sheet at December 31 Cash $ 67,850 $ 66,500 Accounts receivable 20,250 26,450 Merchandise inventory 26,450 21,100 Property and equipment 214,450 153,500 Lesti Accumulated depreciation (63, 800) (48,350) $265,200 $219, 200 Accounts payable $ 13,800 $ 24,300 Wages payable 5,600 6,200 Note payable, long-term 64,500 76,400 Common stock and additional paid-in capital 104,900 68,000 Retained earnings 76,400 44,300 $265,200 $219, 200 Income statement for current year Sales $215,000 Cost of goods sold 112,000 Depreciation expense 15,450 Other expenses 45,000 Net income $ 42,550 Additional Data: a. Bought equipment for cash, $60,950. b. Pald $11,900 on the long-term note payable. c. Issued new shares of stock for $36,900 cash. d. Dividends of $10,450 were declared and paid. e. Other expenses all relate to wages. 1 Accounts payable includes only inventory purchases made on credit. Required: 1. Prepare the statement of cash flows using the Indirect method for the year ended December 31, current year. (List cash outflows as negative amounts.) SHARP SCREEN FILMS, INC Statement of Cash Flows For the Year Ended December 31, Current Year Cash flows from operating activities: Adjustments to reconcile not income to net cash provided Required: 1. Prepare the statement of cash flows using the Indirect method for the year ended December 31, current year. (List cash outflows as negative amounts.) SHARP SCREEN FILMS, INC. Statement of Cash Flows For the Year Ended December 31, Current Year Cash flows from operating activities Show All items Adjustments to reconcile net income to not cash provided by operating activities: Cash flows from investing activities Cash flows from financing activities

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